Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Merger or Acquisition (April 2024)
28 slides from Silvercorp Metals's merger presentation, April 2024
Slide 1: Creating a Growth Focused Geographically Diversified Green Metals Company
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Creating a Growth Focused Geographically Diversified Green Metals Company TSX: SVM | NYSE-A: SVM TSXV: ADZN | OTCQX: ADZVF 0
Slide 2: Disclaimer
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Disclaimer Cautionary Note Regarding Forward-Looking Information and Forward-Looking Statements This presentation news release includes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Ac
Slide 3: Transaction Rationale
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Transaction Rationale Creating a Growth Focused Geographically Diversified Green Metals Company Immediate asset, geographic (China and Ecuador) and commodity diversification to metals key for a low- carbon future (copper, silver, lead, zinc)
Slide 4: Transaction Terms
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Transaction Terms ✓ Silvercorp to acquire all outstanding common shares of Adventus by Plan of Arrangement Transaction ✓ Transaction equity value of approximately C$200 M on a fully-diluted in-the-money basis ✓ Silvercorp and Adventus sharehold
Slide 5: Benefits to Shareholders
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Benefits to Shareholders Benefits to Silvercorp Shareholders Benefits to Adventus Shareholders ✓ Provides immediate asset, geographic and metal ✓ Immediate and significant premium to Adventus diversification shareholders of 31% on a 20-day VWAP
Slide 6: Pro Forma Capitalization
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Pro Forma Capitalization (2) Share Price (C$) $4.84 $0.50 $4.84 Share Price (US$) $3.55 $0.37 $3.55 Basic Shares Outstanding (M) 177.6 382.2 216.3 (3) (6) ITM Dilutive Securities (M) 3.8 23.7 5.8 F.D. ITM Shares Outstanding (M) 181.3 405.9 222.
Slide 7: Pro Forma Resource Base – Measured & Indicated
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Pro Forma Resource Base – Measured & Indicated Accretive Adventus transaction results in +118% precious metals M&I resources and +85% base metals M&I resources TOTAL AG EQ. M&I RESOURCES (AG & AU)(1,2) – 100% BASIS TOTAL CU EQ. M&I RESOURCES (C
Slide 8: Pro Forma Revenue Profile
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Pro Forma Revenue Profile El Domo provides significant near-term growth at an improved cost profile SILVERCORP STANDALONE REVENUE PROFILE (US$M)(1) SILVERCORP PRO FORMA REVENUE PROFILE (US$M)(1,3) Silver Revenue Lead Revenue Zinc Revenue Gold R
Slide 9: Compelling Re-Rating Opportunity
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Compelling Re-Rating Opportunity Strong re-rating rationale as pro forma Silvercorp expected to have an attractive cost and growth profile ‘26E AG EQ. PRODUCTION (MOZ)(1) ‘26E CASH COST (US$/OZ AG EQ.)(2) ‘24E-‘26E PRODUCTION GROWTH (%)(3) P /
Slide 10: Silvercorp is Strongly Positioned to Develop El Domo
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Silvercorp is Strongly Positioned to Develop El Domo SILVERCORP FINANCING ABILITY SNAPSHOT (US$M) $361 Potential reduction of initial capex Remaining Wheaton Precious Metals Stream Deposit ✓ Utilize key contractor and supplier relationships to
Slide 11: Attractive Benchmarking vs. Other Advanced Projects
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Attractive Benchmarking vs. Other Advanced Projects El Domo is a low capex, high-margin asset that will be fully funded INITIAL CAPEX (US$M) – BASED ON LATEST STUDY The El Domo Project will be $2,605 fully funded with the existing $2,334 Wheato
Slide 12: Overview of Ecuador
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Overview of Ecuador Mining’s Role in Ecuadorian Economy MINING PROJECTS IN ECUADOR ✓ Ecuador shares excellent mineral resources with its neighboring countries Peru, Columbia and Chile, and is only beginning to establish its own modern mining se
Slide 13: Summary Transaction Highlights
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Summary Transaction Highlights Creating a Growth Focused Geographically Diversified Green Metals Company Immediate asset, geographic (China and Ecuador) and commodity diversification to metals key for a low- carbon future (copper, silver, lea
Slide 14: Appendix
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Appendix 13
Slide 15: El Domo Project Overview
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF El Domo Project Overview ASSET SNAPSHOT 2021 FEASIBILITY STUDY HIGHLIGHTS Description ⚫ Open pit copper project(1) Mine Life (years) 10 ⚫ 75% owned by Adventus(2) (kt Cu) 11 Ownership ⚫ 25% owned by Salazar Resources (TSX-V: SRL) (“Salazar”) (k
Slide 16: Condor Project Overview
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Condor Project Overview ASSET SNAPSHOT CONDOR NORTH - PRELIMINARY ECONOMIC ASSESSMENT 2021 Ownership ⚫ Concessions vary between 98.7% - 100% owned by Adventus Mine Life (years) 12 LOM Gold Grade (g/t) 0.72 ⚫ Located in the Province of Zamora Ch
Slide 17: Overview of Silvercorp
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Overview of Silvercorp Vancouver-based Canadian company listed on the TSX and NYSE American with market capitalization of US$644 million(1) A leading silver producer with ~100 Moz of silver produced over the past 18 years with 2 mining oper
Slide 18: Profitable Silver Producer with Compelling Value
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Profitable Silver Producer with Compelling Value Consistent profit generation to support growth Market Cap Analysis $644M History (April 25, 2024) • Total production: ~100 Moz silver & ~1.3 B lbs of lead + zinc • Dividends received from mines:
Slide 19: Silvercorp's Operations
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Silvercorp’s Operations China Advantages: • Close to customers (smelters) and suppliers Ying Mining District, Henan Province • Stable mining regulations (SGX, HPG, HZG, TLP, LME, LMW and DCG mines) • Free market for metals • Free profit distrib
Slide 20: Incubating World Class Opportunities – 27.4% New Pacific Metals Investment
Incubating World Class Opportunities TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF –27.4% New Pacifc Metals Investment Silver Sand Project Carangas Project Silverstrike Project A large silver deposit to be A new globally significant 200 m thick, near surface mined by open pit and Ag-Au pol
Slide 21: Building Metals Inventory
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Building Metals Inventory P&P Reserves M&I Resources (not in P&P) Inferred Resources Silver(1) Million Ounces 152 155 126 121 108 115 102 102 102 141 86 86 121 120 96 97 95 119 65 62 75 50 50 57 57 57 77 34 63 57 115 114 115 115 102 99 99 103 1
Slide 22: Growing Low Cost Production
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Growing Low Cost Production (2) Consolidated Production Silver Price(1) AISC 8 Silver (3) Ag Ounces (M) 7.0 6.5 6.4 6.3 6.6 6.0 6.3 6.1 6.2 6 5.3 5.6 5.0 5.1 5.0 4.6 4.0 4.2 3.9 4 1.9 $15.95 2 $11.33 $10.20 $8.77 $9.73 $6.86 $7.49 $3.82 $3.27 $
Slide 23: Focus on Generating Free Cash Flow
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Focus on Generating Free Cash Flow Adjusted Net Income (US$M) Free Cash Flow (US$M) Calendar Year Calendar Year Adjusted net income = adjusted for one-time non-cash items, FX gain(loss), Free cash flow = operating cash flow less capital expendi
Slide 24: Strong Corporate Culture of Responsible Mining
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Strong Corporate Culture of Responsible Mining Highlights of Our Sustainable Practices for All Stakeholders ENVIRONMENT ✓ EMS ISO 14001 certification and investments in environmental protection ✓ Recycled 84.9% of the 4,719,415 m³ of water used
Slide 25: We Construct Green Mines That Generate Sustainable Value
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF We Construct Green Mines That Generate Sustainable Value TAILINGS DRY STACKING TAILINGS BACK FILL FACILITY GC MINE GC MINE Industry best practice Further waste reduction SGX MINE WASTE WATER TREATMENT SYSTEM 1M T/Y WASTE ROCK AGGREGATE PLANT YI
Slide 26: Leadership: A Solid History of Value Creation
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Leadership: A Solid History of Value Creation Management Board of Directors Rui Feng, Ph.D., Geology Rui Feng, Ph.D., Geology Chairman and CEO Derek Liu, MBA, CGA, CPA Yikang Liu, Former Dep. Gen. Sec. of the Chief Financial Officer China Minin
Slide 27: Ownership & Coverage
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Ownership & Coverage Top 10 Investors % Analyst Coverage O/S 1 Van Eck Associates 5.13 2 Rui Feng 3.52 3 Tidal Investments 2.87 4 Renaissance Technologies 2.85 5 Connor Clark & Lunn 2.66 6 Global X Management 2.52 7 Stabilitas GmbH 1.30 8 DZ Pr
Slide 28: Disclaimer
TSX: SVM | NYSE AMERICAN: SVM TSXV: ADZN | OTCQX: ADZVF Disclaimer Qualified Persons (Silvercorp) The scientific and technical information related to Silvercorp’s projects contained herein has been reviewed and approved by Guoliang Ma, P. Geo., who is a Qualified Person (“QP”) within the meaning of
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